Short Sales Speed Up!

Short Sales are about to finally speed up!  The Treasury department is putting big pressure on mortgage companies to speed up the short sale process.  The MAJOR change:

  • Answers within 10 days from the bank when a Short Sale offer is submitted

This change can't happen soon enough!  However, the time line actually starts April 1oth, 2010.   Lenders can go ahead and start complying sooner if they choose.  They have financial incentives to approve these sales and get them off their books.

Short Sales have been a grueling process for just about everyone involved.  Mostly due to the extremely long process it takes to get any information from the lender.  This big change will finally force banks to make a decision one way or another.

A mortgage company has incentives to move the property through a short sale rather than a foreclosure.  Other than the financial bonus from the government, the bank benefits in that the house is sold by a willing owner.  A willing owner keeps the house up, keeps its curb appeal in good condition, and genuinely works to help get it sold.  A foreclosed home is the opposite.  The bank spends money through attorneys repossessing the home which is often left in ruin due to an unhappy and irritated homeowner vacating fast.

I anticipate the sales of short sales will start happening much quicker as Buyer Agents will be able to show potential buyers the property even if the buyers have a tight time frame to purchase, close, and occupy the home.  This is good for Sellers and Buyers!

Posted by Brad Officer on
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